Herald: Betrayal of trust by elected representatives

Betrayal of trust by elected representatives

04 Mar 2018 06:11am IST

Report by
By Claude Alvares AND Rahul Basu

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04 Mar 2018 06:11am IST

Report by
By Claude Alvares AND Rahul Basu

Goa’s MLAs to beg the Central Government to return Goa’s mineral wealth to its mining mafia

Introduction

A delegation of Goa MLAs is off to the Center to plead for an Ordinance to retrospectively amend a 1987 Act, so that existing mineral leases get automatic extension for another 20 years (till 2037). In effect, this is a plea by Goa’s ruling politicians to (a) regularize illegal mining from 23-Nov-2007 till date with amounts recoverable from Goa’s miners likely exceeding Rs 1,00,000 crore, and (b) to hand over another tranche of public money valued at another 1,00,000 crore to the same illegal miners, instead of getting the State the best value through public actions. To apply the Supreme Court’s words, used by it in its recent Goa mining lease renewal case, “the inferences that can be drawn are obvious.”


Background

Natural resources, including minerals, are a shared inheritance, owned by the State in trust for the people and especially future generations. It is our duty to ensure that we protect our inheritance for future generations. Only if we do that, may we consume the fruit. A loss is a loss to our children and all future generations.

In the run-up to the Beijing Olympic Games, the demand for iron ore soared. The resulting iron ore mining boom in Goa lead to a free for all, with the environment being devastated and laws being violated. In response, the Goa government set up a Public Accounts Committee under Manohar Parrikar to examine mining. The PAC observed: 

“There is a complete breakdown of all machineries provided by the Statute which are required to ensure that mining is undertaken and carried out in a legally permissible manner.  The term ‘irregular mining’ is nothing but illegal mining.”

The Center set up the Justice M.B. Shah Commission to examine illegal mining in Goa. After visiting Goa, it wrote:

“Inaction, delayed action and mild actions have created fearless atmosphere, abuse of law and regulations in the Goa State. This has paved ways for large scale irregularities, illegalities and corruption. …The regulatory mechanism has totally collapsed and irregularities due to maladministration have risen to its peak. In the process, the sole loser is environment, eco-system of the Western Ghats, general public and treasury of Goa State.”

“It is pertinent to state here that such illegal acts can’t happen without connivance of the politicians, bureaucrats and lessees. There is a complete collapse of the system.”

Riding the anti-corruption surge and the leaked PAC Report, the BJP, led by Manohar Parrikar, won a majority in Goa’s Legislative Assembly elections in Feb 2012. A key promise was to clean up corruption.


Goa Mining Case

Following the Shah Commission report, Manohar Parrikar banned mining in Goa on September 10, 2012. In the subsequent PIL filed by the Goa Foundation (GF), the Supreme Court (SC) issued a historic judgement on April 21, 2014. Some of the key rulings were (a) all mining leases had expired on November 22, 2007, and mining done thereafter for five years was illegal; (b) The Goa government would have to issue fresh leases, keeping the laws and Constitution in mind; (c) on grounds of intergenerational equity, an interim cap was imposed of 20 million tonnes per annum (mtpa); and (d) a fresh levy of 10% of the sale value was imposed to be deposited in the Goa Iron Ore Permanent Fund for future generations. A number of other illegalities alleged were left to the Goa government to pursue. The period of illegal mining was under Digambar Kamat of the Congress.

Goa now had a clean slate. No existing leases. The recoverable due to nearly five years of 100% illegal mining was conservatively estimated at Rs 65,058 crore, or Rs 4.5 lakh per person (Goa Foundation). Recent claims by the Goa Mineral Ore Exporters Association (GMOEA) – that Goa exported US$ 7 billion of iron ore each year before 2012 – would lead to recoverable amounts of over Rs. 2,04,750 crore!


Mining lease renewals

Less than a month later, in May-2014, the BJP won a historic majority in the Parliament elections, promising that natural resources would henceforth only be auctioned. Keeping with its promise, on November 17, 2014, it introduced a bill for public consultation providing that henceforth, mining leases could only be granted to private players through auctions. Only PSUs could still be allotted mineral leases without auctions.

Back in Goa, Manohar Parrikar ruled out auctions and PSU mining despite the BJP manifesto. Auctions raised the threat of the unknown mining mafia coming into Goa, he said, and PSU mining raised the possibility of corruption and misgovernance. Instead of recovering the amounts legally due from the miners and either auctioning mines or mining under a PSU, the BJP government, initially under Manohar Parrikar and later under Laxmikant Parsekar, renewed 88 mining leases. Not just renewed leases, but back-dated their period of validity to November 22, 2007.


In effect, this gave up the claim of Rs 65,058 crore. Also, as the leases would continue on the old regime without auctions, a further Rs 79,865 crore would be handed over during the remaining life of the leases (to expire on November 22, 2027). A total grant from the Goa government to the miners of Rs 1,44,865 crore (or Rs 10 lakh per Goan). An important justification was the disruption to the income of the mining dependent. Over the years, approximately Rs 300 crore has already been spent for the mining dependents, mostly for truck and barge owners.

Mining restarted on August 10, 2015. Within two years, Goa witnessed another massive air pollution violation in Sonshi village, when the Bombay High Court took suo moto notice, as did the State Child Rights Commission and the State ST Commission. Simultaneously, using the Mining Surveillance System, 12 new cases of illegal mining were detected.


Goa Lease Renewal Case

Three groups of petitioners – Goa Foundation, Sudip Tamankar, and a group led by Rama Velip – filed cases in the Supreme Court challenging the renewals and a related High Court order directing them. On February 7, 2018, in a scathing judgement, the SC quashed the mining lease renewals, but gave the miners until March 15, 2018 to manage their affairs. The SC said:

“The State ignored the fact that every single mining lease holder had committed some illegality or the other in varying degrees.”

“With the mining lease holders violating virtually every applicable law or legal requirement, it is clear that the rule of law was not their concern.”

“It was observed by Justice Khehar in Natural Resources Allocation that material resources of the country should not be dissipated free of cost or at a consideration lower than their actual worth. This was not kept in mind and mining leases were renewed for a small payment of stamp duty and royalty. It is therefore clear that the considerations that weighed with the State were not for the people of Goa but were for the mining lease holders.

“The entire exercise undertaken by the State was a hasty charade, regardless of violations of the law by the mining lease holders, without any benefit to the Indian industry and without any concern for the health of the average Goan.”

“…Without making any serious attempt to recover such huge amounts, the State of Goa has granted second renewal of mining leases and the MoEF played ball by lifting the abeyance order in respect of the environment clearances. The inferences that can be drawn are quite obvious.”

In effect, the position from the previous judgement has been restored. Mining after November 22, 2007 is illegal. Even larger amounts are recoverable, more than enough to provide for any further doles to the mining dependents.


MLA delegation

Goa can restore the environment first and simultaneously pursue recoveries. Dumps the size of 300 Giza pyramids litter the State, using up land. An estimated 150 million tonnes are saleable, if we remove the iron ore from these dumps alone. (There are several other valuable minerals in these dumps, discarded as waste.) Numerous mining pits and quarries have been abandoned, even in wildlife sanctuaries. The agricultural fields & river bottoms are coated with iron ore, at times a meter thick. Dump mining could be conducted by a PSU, with auctions of the raising contract and the iron ore for sale. This would utilise the mining cap for at least eight years, giving the land some breathing time and space to recover health. Recoveries are to be saved in the Permanent Fund, and only the real income distributed as a common dividend. This option, advocated by the Goenchi Mati (Goan Earth) Movement, would create jobs, provide a shared prosperity and restore a green Goa.

The alternative of restoring the environment as an economic opportunity is never discussed by Goa’s politicians. Instead, they see only 2 legal courses of action – fresh mining through a PSU, or fresh mining through auctions of mining leases to private entities. Neither is attractive. The existing miners would still need to cough up huge sums, they would nevertheless be debarred from mining for their persistent illegalities. This is a mortal threat to the entire miner-politician-bureaucrat nexus.

As a result, Monday will witness Goa’s MLAs (Congress and BJP) pleading with the BJP government at the Centre to pass an ordinance so that they do not have to pursue their miner friends for recovery of illegal gains and start afresh. They will plead to give away more of our collective mineral wealth, our jeydaad, to a few super-rich miners, leaving behind a corrupt, devastated and bankrupt Goa for our children. We hope they do not succeed. That is not the reason they were elected to the Assembly. They were elected to ensure the public welfare of all Goans and not to betray it. Generations of Goans will remember this sordid betrayal of trust by their elected representatives.
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